Brand Equity and Deletion Analysis on the Company of Nivea

Brand Equity and Deletion Analysis on the By Chloe Rogers Company of Nivea EXECUTIVE PROCESS PROMPT BRAND BRAND SUMMARY QUESTIONS EXPANSION DELETION Overview “The goal of this assignment was to perform a brand equity analysis of Nivea, comprehend its expansion strategies (umbrella and sub-branding), and then make an informed decision to suggest which of Nivea’s product lines should be deleted. By implementing concepts from Varadarajan, Executive DeFanti and Busch’s article about managing brand deletions, a summary of brand deletions and expansions was created for Summary focusing on the aforementioned concepts. Drawing upon market trends and social trends, we suggested that Nivea delete its Nivea Body and Nivea Hair product lines while expanding upon Nivea for Men, Nivea Beauté, and Nivea Sun.” 1) Read the Nivea Case Study 2) Read Varadarajan, DeFanti and Busch’s work 3) Collected information about the brand The Process 4) Answered all three prompt questions 5) Took the prompt a bit further 6) Made an educated analysis of brand deletion and expansion recommendations 1) What is the brand image and sources of equity for the Nivea brand? Does it vary across product classes? Has it changed over the years? 2) How would you characterize the Nivea brand extension Three Prompt strategy? Has the company properly expanded the brand? How Questions consistent and cohesive is its brand hierarchy? 3) What are the pros and cons of the various brand architecture options available to Beiersdorf management? Should management run a corporate umbrella campaign for all products or revert to sub-brand strategy? Nivea Men: Expand 28% of revenues were from Men’s product sales in 2014 Industry is valued at $11.6 billion Self care no longer being considered feminine Overall: Expandability, age, perceived value Nivea Beauté: Expand Can gain market share in the United States Can gain market share in the younger generations Industry is valued at $532 billion Overview: Market size growth, perceived value, attractiveness, perceived quality and expandability Growth of Makeup Industry Nivea Sun: Expand Social awareness and exposure Seasonality can be combatted by sunless tanning methods and makeup Overview: Expandability, perceived value and strength of associations Nivea Hair: Delete Inability to match company attributes with that of the industry products American industry is already saturated Allocation to Nivea Beauté Overall: Market size, attractiveness to opportunities Nivea Body: Delete Contradictory to social trends Social responsibility Rise of eating disorders and body dysmorphia Overview: Gap between corporate and brand image, social trends, cost of repositioning Nivea Product 3 in 1 Bodywash 3 in 1 Lotion Men’s Facewash CVS selling $5.99 $8.79 $7.99 price Price per oz $0.34/ oz $0.52/ oz $1.60/ oz Other Brand Dial 3 in 1 Blade Face + Neutrogena Men’s Products Body Lotion for Facewash Men CVS price $6.79 $8.29 $8.29 Price per oz $0.42/oz $1.63/oz $1.63/ oz Pricing Analysis from the scope of CVS Product Nivea Skin Jergens Skin Beauty 360 Name Firming Firming Healing CVS Price $11.49 $11.49 $9.29 Price per/ $0.68/oz $1.53/oz $1.24.oz oz Pricing in accordance with brand image CVS store brand Pricing Analysis Economies of scale Overview Packaging/ distribution Ingredients 01 02 03 04 05 Nivea for Nivea Nivea Sun: Nivea Nivea Hair: Men: Beauté: Expand Body: Delete Expand Expand Delete Conclusion Thank you!!!.

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